Sales of
alcoholic drinks continue to experience a decline in demand due to the
popularity of drinks such as beer and a steady decline in sales of
traditional ones such as spirits, triggered by changes in consumer
habits with a greater preference for healthier drinks. On-trade sales
showed initial improved results in comparison to the previous year,
impacted by very good weather during spring that motivated more people
to visit outdoor cafés and bars. However, the shift towards off-trade
sales within alcoholic drinks continued in 2011 as more people concerned
with rising foodservice prices were motivated to entertain at home
more.

Dutch consumers shift towards products with a
healthier image

Dutch consumers are increasingly health
conscious; keen to reduce consumption of food and drinks considered to
be unhealthy or leading to disease. Alcoholic drinks is influenced by
this trend as more consumers are drinking less alcohol or switching to
products that contain with lower alcohol content. Wine is experiencing
healthy growth in The Netherlands triggered by more demand from
consumers who usually drink other alcoholic drinks, such as young males.
Other sparkling wine, such as prosecco, or cider are gaining popularity
as an alternative to beer or spirits. Government campaigns to prevent
the young from drinking alcohol are intensifying while media reports of
alcohol abuse with fatal consequences continue to harm the image of
alcohol further. Products such as non-alcoholic beer registered the
highest growth in 2011, impacted by rising demand from consumers who are
shifting from standard beer, for example.

Grocery
retailers place pressure on price in order to capture demand

The
Dutch distribution map for alcoholic drinks is led by grocery
retailers, as supermarkets continue to concentrate more sales through
intense promotion and offers in key products such as beer and wine.
Internet retailing is registering the fastest growth rate in terms of
distribution, although from a smaller base. More Dutch people are using
the internet not only to compare prices and research products, but also
to purchase. Traditional retailers such as food/drink/tobacco
specialists are witnessing intensified pressure from grocery retailers
and non-store retailing, trying to respond with more price promotions in
categories such as wine or beer.